Pulling the Outside In: A Transactional Cost Perspective on IT Insourcing

This research applies transaction cost economics to conceptually investigate longitudinal change of IT outsourcing costs, and its impact on managerial sourcing decisions. I propose that the change of, and underestimation of actual IT outsourcing costs contribute to IT insourcing. Implications and recommendations for future research are provided.

[1]  Ashley A. Bush,et al.  A Comparison of Transaction Cost, Agency, and Knowledge-Based Predictors of IT Outsourcing Decisions: A U.S.-Japan Cross-Cultural Field Study , 2007, J. Manag. Inf. Syst..

[2]  Jan B. Heide,et al.  Transaction Cost Analysis: Past, Present, and Future Applications , 1997 .

[3]  Dorothy E. Leidner,et al.  Bringing IT Back: An Analysis of the Decision to Backsource or Switch Vendors , 2006, Decis. Sci..

[4]  O. Williamson.  The Economics of Organization: The Transaction Cost Approach , 1981, American Journal of Sociology.

[5]  Rajiv Kishore,et al.  An investigation of factors that influence the duration of IT outsourcing relationships , 2007, Decis. Support Syst..

[6]  Detmar W. Straub,et al.  Production and Transaction Economies and IS Outsourcing: A Study of the U.S. Banking Industry , 1998, MIS Q..

[7]  JoAnne Yates,et al.  Electronic markets and electronic hierarchies , 1987, CACM.

[8]  Eric W. Ford,et al.  IT outsourcing and firm-level performance: A transaction cost perspective , 2009, Inf. Manag..

[9]  Andrew B. Whinston,et al.  Incomplete contracting issues in information systems development outsourcing , 1992, Decis. Support Syst..

[10]  D. King-hele,et al.  Here, there and everywhere , 1988, Nature.

[11]  Rudy Hirschheim,et al.  The myths and realities of information technology insourcing , 2000, CACM.

[12]  D. Lamminmaki.  An examination of factors motivating hotel outsourcing , 2011 .

[13]  Bandula Jayatilaka,et al.  Information systems outsourcing: a survey and analysis of the literature , 2004, DATB.

[14]  O. Williamson.  Transaction-Cost Economics: The Governance of Contractual Relations , 1979, The Journal of Law and Economics.

[15]  Eric T. G. Wang.  Transaction attributes and software outsourcing success: an empirical investigation of transaction cost theory , 2002, Inf. Syst. J..

[16]  V. Grover,et al.  Examining the outsourcing of information systems functions from diverse theoretical perspectives , 2001 .

[17]  Goda Kvedaravičienė,et al.  Underestimated Importance of Cultural Differences in Outsourcing Arrangements , 2010 .

[18]  N. Venkatraman,et al.  Safeguarding Investments in Asymmetric Interorganizational Relationships: Theory and Evidence , 2003 .

[19]  Peter Gorringe.  The Economic Institutions of Capitalism: Firms, Markets and Relational Contracting by Oliver E. Williamson , 1987 .

[20]  Natasha F. Veltri,et al.  Information Systems Backsourcing: Correcting Problems and Responding to Opportunities , 2008 .

[21]  W. Dugger.  The Economic Institutions of Capitalism , 1987 .